Keynesians identify three principal motives for demanding money. They are the:
A. transactions demand, precautionary demand, and liquidity motive.
B. transactions demand, precautionary demand, and convertibility motive.
C. transactions demand, speculative demand, and volatility motive.
D. transactions demand, speculative demand, and precautionary demand.
Answer: D
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Riley deposits $4,000 cash in her checkable deposit at Fershur Bank. If the desired reserve ratio is 5 percent, Fershur Bank's
A) desired reserves increase by $4,000. B) liabilities do not change but its assets increase. C) excess reserves increase by $4,000. D) desired reserves increase by $200 and its excess reserves increase by $3,800. E) assets and its liabilities change in opposite directions.
Which of the following will not cause the labor demand curve to shift to the right?
A) a technological improvement that increases labor productivity B) an increase in human capital in the labor force C) an increase in the market wage rate D) an increase in the price of the firm's product